Get More Commentary, Discussion & Market Information On -

National Australia Bank said its first-quarter cash profit rose 3% from a year ago to $1.65 billion.

The result was after what the bank reported was a sharp rise in expenses leading to a contraction in margins.

Chief executive Andrew Thorburn said the bank was on target to meet its targets despite the rise in expenses, including an additional $1.5 billion of investment over the next three years.

Revenue rose 1% in the quarter with “good growth” from business and private banking, plus corporate and institutional divisions. Bad and doubtful debts fell 23% to $160 million in the quarter. That suggests that without such a large fall, the bank’s cash earnings would have been weaker.

Without giving a figure, the bank saids its net interest margin fell in the quarter, but was “broadly stable” excluding markets and Treasury “impacts.”

Glenn Dyer has been a finance journalist and TV producer for more than 40
years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial
Review, The Nine Network and Crikey.

At the AFR he was a finance
writer, Finance Editor, News Editor and Chief of Staff. At the Nine Network
he was supervising producer of Business Sunday for more than 16 years. He
has also written for other online and analogue print publications here and
overseas.